Apportionment of state aid--Payments to school districts--Deduction of delinquent payments where funds pledged.

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13-13-39. Apportionment of state aid--Payments to school districts--Deduction of delinquent payments where funds pledged.

The Department of Education shall apportion the state aid to education funds to each eligible school district and shall prepare a list of apportionments to be posted publicly in electronic format.

The state auditor shall issue the warrant to each school district when the apportionment voucher is presented for the total amount of the state aid to education funds each school district is to receive, subject to any reduction necessitated by the issuance of a notice from the Health and Educational Facilities Authority as provided in this section.

Notwithstanding the provisions of §13-13-74 or any other law, if the department receives written notice from the authority that a school district is delinquent in making any payment for any certificate, lease, or other obligation required by agreement with the authority in which the school district has pledged state aid to education funds or other amounts under Title 13 pursuant to a lease, resolution, certificate, or other arrangement with the authority, the department shall deduct from amounts otherwise due to a school district for the apportionment of state aid to education funds or other amounts under Title 13 the amount required to pay rentals, bonds, notes, certificates, or other amounts then due but unpaid. The state auditor shall issue a warrant for the full amount of the delinquency specified in the notice of the authority or a lesser amount as has been appropriated for the current fiscal year and not yet distributed pursuant to §13-13-74. The amount deducted shall be paid to the authority or any financial institution designated by the authority acting as paying agent or trustee on behalf of any holders of bonds, notes, lease, certificates, or other obligations in connection therewith, all as specified by the authority. A record of the amount deducted and a copy of the notice from the authority shall be filed with the state auditor and department.

Any amount paid to the authority or a financial institution designated pursuant to the procedures described in this section shall be deducted from the remaining amount of state aid to education funds otherwise payable to the school district under Title 13, thereby reducing the amount payable pursuant to §13-13-74. The amount payable to the authority and any financial institution pursuant to this section in any fiscal year may not exceed the amount of state aid to education funds appropriated and not yet paid to or for the benefit of a school district for the current fiscal year. No pledge by a school district of state aid to education funds or other amounts under Title 13 for any other purpose may be permitted and if made is voidable at the election of the authority.

Source: SL 1959, ch 67; SDC Supp 1960, §15.2246; SL 1961, ch 76; SL 1963, ch 77; SL 1969, ch 44, §30; SL 1970, ch 96, §4; SL 1971, ch 107, §1; SL 1975, ch 128, §87; SL 1986, ch 124, §5; SL 1989, ch 146, §1; SL 1990, ch 133, §2; SL 1997, ch 90, §1; SL 1999, ch 84, §1; SL 2003, ch 272 (Ex. Ord. 03-1), §63; SL 2012, ch 88, §8; SL 2015, ch 89, §14; SL 2015, ch 90, §3.


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